A practical guide to buyout private equity—deal sourcing, leverage, value creation, capital calls, exits, and current market dynamics.
Buyout private equity crystallized in the 1970s–80s with the rise of leveraged buyouts (LBOs), using debt financing to acquire and improve companies before exiting via sale or IPO.
Managers raise committed capital, draw it via capital calls for deals and fees, and return proceeds through distributions. Reporting has standardized materially, improving transparency between GPs and LPs.
Higher rates and slower exits emphasize active value creation, selective underwriting, and the growing role of secondaries and NAV facilities in liquidity planning.